ARMK - Embedded Expectations Analysis - 2019 01 31
Aramark (ARMK:USA) currently trades below recent averages relative toUAFRS-based (Uniform) Earnings, with a 13.7x Uniform P/E, implying bearish expectations for the firm. Additionally, management is concerned about their Avendra and AmeriPride acquisitions, international profitability, margins, and U.S. revenue growth
Specifically, management may be overstating the potential for the Avendra and AmeriPride acquisitions to significantly bolster the competitive position of their portfolio. Moreover, they may lack confidence in their ability to sustain business momentum, and may be concerned about the profitability of international operations. Also, they may be concerned about their ability to increase revenue in their U.S. business, find outsourcing opportunities, and improve margins. Finally, they may be downplaying cost headwinds from natural disasters, tariffs, and inflation
Aramark is a provider of food, facilities and uniform services. The company manages its Food and Support Services (FSS) business in segments split between its United States and International operations. The company's FSS segments manage a number of interrelated services-including food, hospitality, procurement and facility services-for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks and correctional institutions. The company's Uniform and Career Apparel segment provides employee uniform solution, including design, sourcing and manufacturing, delivery, cleaning and maintenance.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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